GO plc - Full-Year Results

On 15 March 2011, GO plc published its 2010 financial results revealing a 7% increase in revenue to €132.3 million on the back of turnover growth in broadband and digital TV services which offset the reduction in traditional fixed-line. During 2010 the Group registered an 8% increase in customer connections to over 500,000 connections. On the other hand, GO incurred an 8.5% rise in cost of sales to €78.9 million mainly driven by the TV segment. Nonetheless GO registered a 4.9% increase in gross profit to €53.4 million with the gross profit margin declining from 41.2% in 2009 to 40.4% in 2010.

The Group noted that it registered savings in its wage bill and voluntary retirement costs were much lower than the €11.5 million incurred in 2009. Excluding the one-offs, normalised EBITDA amounted to €49.1 million in 2010, representing an increase of €6.6 million over 2009.

However the improved results from local operations were outweighed by the substantial increase in the share of losses from the Group’s investment in Greece through its joint-venture, Forgendo. The share of loss in 2010 amounted to €24.7 million (2009: €9 million) as Forthnet’s performance was negatively impacted by the prevailing economic scenario in Greece. The growth in Forthnet’s telecom business was not enough to offset the decline in its TV business.

Overall, GO reported a loss for the year of €19.2 million, significantly higher than last year’s loss of €6.7 million. The Directors recommended a final net dividend of €0.05 per share which is half the dividend paid last year. Shareholders as at close of trading on 4 May will be eligible to this dividend which will be paid on 11 June following approval by shareholders at the next Annual General Meeting scheduled for 8 June.

Download a copy of GO plc’s 2010 Preliminary Results.

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